Harley-Davidson 2025 Q3 Earnings Strong Performance as Net Income Surges 223.5%

Harley-Davidson (HOG) reported third-quarter fiscal 2025 results that exceeded expectations, driven by a 16.5% revenue increase and a 223.5% surge in net income. However, the company withheld full-year guidance due to ongoing macroeconomic and tariff uncertainties.

Revenue

Harley-Davidson’s total revenue rose to $1.34 billion in Q3 2025, a 16.5% increase from $1.15 billion in Q3 2024. The HDMC segment led with $1.07 billion in revenue, driven by a 33.5% year-over-year increase in motorcycle sales to $821.86 million. Parts & Accessories contributed $167.25 million, while Apparel and Licensing added $56.05 million and $5.55 million, respectively. Financial services revenue declined slightly to $261.19 million, while LiveWire and other segments accounted for $5.56 million and $23.24 million.

Earnings/Net Income

The company’s EPS soared 240.2% to $3.13 in Q3 2025, compared to $0.92 in Q3 2024. Net income surged to $375.17 million, a 223.5% increase from $115.97 million a year earlier. The significant EPS and net income growth underscores Harley-Davidson’s strong operational resilience.

Post-Earnings Price Action Review

Following the earnings report, Harley-Davidson’s stock edged up 0.08% on the latest trading day but declined 5.64% for the week and 4.18% month-to-date. Despite the earnings beat, the stock faced downward pressure amid concerns over global retail sales declines and macroeconomic headwinds. Investors remain cautious, with shares trading at $24.55 premarket, down 9.44% from previous levels.

CEO Commentary

CEO Artie Starrs emphasized the positive impact of the HDFS transaction, which transformed the financial services segment into a capital-light model, unlocking $1.2–$1.25 billion in discretionary cash. He highlighted dealer support as a cornerstone of sustainable growth, stating, “When they thrive, Harley-Davidson thrives.” Starrs also noted progress in reducing global dealer inventory by 13% and expressed optimism about the 2026 model lineup, including the affordable Sprint model to attract younger riders.

Guidance

Harley-Davidson reiterated its decision to withhold full-year 2025 financial guidance for the HDMC segment due to ongoing uncertainties around tariffs and macroeconomic conditions. For LiveWire, the company revised its operating loss forecast to $72–$77 million, maintaining a total net cash use of $50–$60 million.

Additional News

Harley-Davidson completed the $5 billion sale of its financial services division (HDFS) to KKR and PIMCO, marking a strategic shift to a capital-light model. The transaction is expected to unlock over $1.2 billion in discretionary cash by Q1 2026. Additionally, the company announced a $200 million accelerated share repurchase under its $1 billion buyback plan. Leadership changes included Artie Starrs succeeding Jochen Zeitz as CEO, with a renewed focus on dealer partnerships and product affordability.

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